2016-12-18

PBoC Official: M2 Growth Below 12pc in 2017, RE Tax Delayed

Sheng Songcheng from the PBoC says M2 growth will be below 12 percent in 2017, and the real estate tax is difficult to implement in the next few years.

M2 growth is below 12 percent in 2016 (11.4 percent as of November), though it started the year hot. The 3-month rolling M2 growth rate hit 16.2 percent in March and then 14.1 percent in August before sliding to 5.2 percent in November.

Concern for the real estate market, Sheng Songcheng that the real estate tax because of complex design, difficult to launch within the next few years.

In addition, the current real estate supply problem is more prominent, Sheng Songcheng said that this is reflected in the majority of large and medium-sized cities in land supply declining year by year, the land auction "volume reduction", residential land and new residential supply.